Case Law Details
Star Alloys & Chemicals Pvt. Ltd. Vs. CCE & ST (CESTAT Delhi)
CESTAT has held that in the case of GTA service, CENVAT credit is available, therefore extended period cannot be invoked.
Learned Advocate submits that whatever service tax was payable by them on the said GTA services, the same was available as a credit to them. As such, the entire situation was revenue neutral, in which case the longer period of limitation would not apply. In as much as the demand has been raised by invoking the extended period, the same is barred by limitation.
I find that admittedly, the service tax paid by the appellant on reverse charge basis, in respect of GTA services was availed to them as credit, thus leading to revenue neutral situation. Tribunal in the case of Reliance Industries vs. CCE, Mumbai – 2016 (44) S.T.R. 82 (Tri. – Mum.) has held that extended period cannot be invoked in the case of revenue neutral situation. As such, on this ground itself, the demand against the appellant is not sustainable. The same is accordingly set aside.
FULL TEXT OF THE CESTAT JUDGEMENT
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